Jim Cramer Commented That the “Fundamentals Seem Very Strong at Palantir”

Palantir Technologies Inc. (NASDAQ:PLTR) is one of the stocks Jim Cramer recently expressed his thoughts on. A caller asked if they should sell the stock now after recovering their cost basis or hold long-term in hopes of a potential $1 trillion valuation. Cramer commented:

“I don’t know if it’ll hit a trillion-dollar market cap. Here’s what I know: you took out your cost basis, you cannot lose money now. I think that is an incredible position, and what I like to do when I can’t lose money is I like to let… [it] run unless the fundamentals change. And right now, the fundamentals seem very strong at Palantir.”

Palantir Technologies Inc. (PLTR): I Don't Own It, But I Recommend It, Says Jim Cramer

Palantir Technologies Inc. (NASDAQ:PLTR) develops software platforms that support data integration, analysis, and operational decision-making for governments and enterprises. During the September 18 episode, Cramer explained why the company’s stock is speculative. He said:

“What [are] examples of what speculation means? Let me give you some categories. Alright, first, there are the richly valued stocks with real earnings like Palantir. Here’s a company that clients swear by because it aggregates data, uses artificial intelligence to find patterns that can turbocharge sales and earnings. People love this company. It’s also got a cybersecurity aspect. Palantir’s profitable, but the stock now sells for 277 times this year’s projected earnings. That’s why it’s speculative.”

While we acknowledge the risk and potential of PLTR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PLTR and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.